U.S. - European Union Disputes in the World Trade Organization Page: 14 of 18
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CRS-11
WTO panels agreed with the U.S. argument and gave the EU time to bring its
hormone measure into compliance with SPS rules. The EU, however, argued that
none of the scientific reports established beyond reasonable doubt that the
consumption of beef treated with hormones was safe for human health. The EU also
claimed that a judgment about the level of protection was a value judgment that only
it could make. Occurrences of "mad cow disease" in several EU countries and the
outbreak of foot-and-mouth disease in the United Kingdom also contributed to
making many Europeans more risk averse on this issue. As noted earlier, the US in
1999 imposed 100% ad valorem tariffs on $116.8 million in EU exports, an amount
of retaliation that is still in effect.
Food safety concerns are not limited to the beef hormone case, however, with
the United States having recently filed a complaint in the WTO requesting
consultations with the EU regarding its restrictions on products containing
genetically-modified organisms (GMOs). The EU has imposed a moratorium on
approval of GMO products while it implements regulations requiring traceability and
labeling. Some EU countries have also adopted a policy of banning such products,
though the EU has indicated that it would seek to prohibit individual countries from
maintaining their bans once EU regulations are in place. The United States views the
moratorium and import bans, which significantly affect exports of U.S. agricultural
products to Europe and, it is alleged, to developing countries as well, as not being
scientifically-based as is required under the SPS Agreement and has expressed doubts
as to the feasibility of the proposed regulatory scheme. Members of Congress have
been calling for the initiation of a dispute settlement proceeding, with the EU
strongly defending its practices and urging the United States to allow the EU
regulatory regime to be fully implemented.16 The United States filed its WTO
complaint May 13, 2003, with Canada and Argentina initiating separate actions. A
complaining country may request a panel if its dispute with the EU is not resolved
within 60 days of its consultations request.
In Europe, GMOs are an issue of great public sensitivity. Several food safety
crises in the late 1990s heightened public fears about biotechnology and reduced
public confidence in the ability of government agencies to police such activities. Nor
have such technologies found much favor within the European agricultural sector that
still places major emphasis on maintaining family farms. Given these sensitivities
and preferences, it is uncertain whether the EU would comply with a WTO decision
that lifted the moratorium directly or indirectly. The issue has been further
complicated by both U.S. and European efforts to persuade other countries to adopt
their approaches towards biotechnology in foods and agriculture."
Export Subsidy Dispute
How the United States taxes export earnings has been the focus of a dispute
with Europe since the 1970s. The current dispute is a product of multiple factors:
16 See generally "Consumers in Europe Resist Gene-Altered Foods," N.Y. Times, February
11, 2003, at A3.
" The Atlantic Council of the United States, Risk and Reward: U.S.-EU Regulatory
Cooperation on Food Safety and the Environment, Policy Paper, November 2002, pp. 10-16.
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Ahearn, Raymond J. & Grimmett, Jeanne J. U.S. - European Union Disputes in the World Trade Organization, report, May 27, 2003; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc821439/m1/14/: accessed May 3, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.